Japanese Firms Looking at Iranian Opportunities

Nikkei Asian Review reports that Japanese companies are eager to return to Iran, but adds that the risk of doing business in the volatile region is also not lost on anxious corporate chiefs.

Tokyo lifted sanctions on Iran on Friday, and Japanese automakers, including Toyota, Nissan and Mazda aim to quickly restart exports, with Isuzu Motors also considering resuming exports of commercial vehicles.

In the financial sector, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp and Mizuho Bank are looking at restarting some non-dollar money-wiring service to Iran, and insurance companies can also issue trade policies lasting longer than two years.

Iran, with a population of about 78 million, has the world’s largest natural gas reserves and fourth-largest oil reserves. If the country pumps out more crude, it may spark a further drop in oil prices.

Trading house Itochu as well as major plant builders such as JGC, Chiyoda and Toyo Engineering are on the hunt for repair orders for oil infrastructure. Itochu may increase personnel at its two-person Tehran office, and Chiyoda plans to send permanent staff to Tehran.